ENGLISH

Startup and operation of a beauty salon

Selection of location and suitable commercial districts

Selection of location and suitable commercial districts

Buildings permitted to contain beauty arts businesses

- A beauty arts business only permitted to be located in a building where its use is classified as class 1 neighborhood living facility (Article 2(2) of the Building Act and Article 3-5 of the Enforcement Decree of the Building Act).

Specific-use areas permitted to contain beauty arts businesses

- The operation of beauty salon is permitted in areas without restriction except in the following specific-use areas pursuant to the National Land Planning and Utilization Act (Article 76(1) of the National Land Planning and Utilization Act and Article 71(1) of the Enforcement Decree of the National Land Planning and Utilization Act).

Specific-use areas	Restrictions
▪ Class-1 exclusive residential area ▪ Class-2 exclusive residential area	The total floor area of the place of beauty arts business must be less than 1,000m² (Subparagraph 1(b) of attached Table 2 and Subparagraph 1(c) of attached Table 3 of the Enforcement Decree of the National Land Planning and Utilization Act)
▪ Green conservation area	Urban and gun planning ordinances of the area must allow the construction of buildings that constitute class 1 neighborhood living facilities. In this case, the total floor area used for the corresponding place of beauty arts business must be less than 500m² (Subparagraph 2(b) of attached Table1 5 of the Enforcement Decree of the National Land Planning and Utilization Act)
▪ Conservation management area ▪ Production management area ▪ Agricultural and forestry area	Urban and gun planning ordinances of the area must allow the construction of buildings that constitute class 1 neighborhood living facilities (Subparagraph 2(a) of attached Table 18, Subparagraph 2(b) of attached Table 19, and Subparagraph 2(a) of attached Table 21 of the Enforcement Decree of the National Land Planning and Utilization Act)
▪ Natural environment conservation area	Business prohibited (Attached Table 22 of the Enforcement Decree of the National Land Planning and Utilization Act)

※ The operation of a beauty arts business is permitted without restriction in specific-use areas other than those provided above.

￭ If any person wishes to open a beauty salon, he or she should obtain a building register from the district office or Government24 (http://www.gov.kr) to identify whether the building is unauthorized, how large the area is, and what the purpose of the building is, so as to make sure that the business operation is permitted at the building before signing a lease agreement.

Types of commercial districts suitable for beauty arts businesses

Types of suitable districts	Merits and demerits	Features
Primary locations (District centers or areas adjacent to subway stations)	Merits	▪ It is easy to secure female customer base in connection with fashion businesses such as apparel stores and general stores ▪ High preference for fashion allows the revenue to rise by providing high-priced services and products ▪ Demand is sufficient and requires high quality
	Demerits	▪ High-cost property rents in overall are incurred due to the development of centrally-located commercial districts and areas adjacent to subway stations ▪ Due to the competition for scale, the profitability may be low compared to the size of investment ▪ Need to be ready for competition with franchises of famous designer salons
Secondary locations (Neighborhood living facilities in residential areas)	Merits	▪ Achieving efficiency of securing certain customer base by using 1-2 core workers in a small-scale establishment may be sought ▪ It is easier to compete for scale than in centrally-located commercial districts or areas adjacent to subway stations ▪ Services become rapidly famous through word-of-mouth, and thus it is advantageous to founders with satisfactory skills but insufficient capital
	Demerits	▪ As the demand is limited and small and medium-sized salons divide the market, there are clear limitations to raising the revenue ▪ Small salons will bear limitations such as the failure to accommodate customers when demand is high